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Same-day ACH Seen as Boon to Smaller Banks

Much has been written about the expectations for faster payments, particularly in the form of same day ACH. This article discuss the positive implications for smaller financial institutions to have a level playing field for solutions like consumer person-to-person payments. As Tammy Stolpp, senior vice-president with The Bank of Hemet told NACHA:

Same-Day ACH keeps us relevant as a small community bank. Customers expect faster payments now, and we see demands increase every day. Same-Day ACH now will help keep us on an even playing field with big banks. Same Day ACH allows us to continue to compete. We want to offer next-generation services. We don’t want to look like a small bank, and Same-Day ACH levels the playing field.

Another potential revenue generating use for same day ACH is emergency payroll payments which are sometimes managed through wire transfer today:

When you have an originator that has thousands of items and a massive payroll, if a deadline is missed, it’s really hard on everyone. For example, we have municipalities as customers that have contractual agreements that mandate that their employees get paid in a certain way at a certain time. It’s a nightmare to issue manual checks. Same-Day ACH will now be a huge safety net for our customers.

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group